The early days of Obamacare's national healthcare exchange have been a catastrophe, with only 1% of attempted registrants ultimately getting to the point of applying for insurance. For a commercial venture to achieve a 99% failure rate even during beta testing would be a sign of imminent doom. Of course, Obamacare isn’t a commercial venture. And in fact, a commercial venture would never have faced many of the issues that have contributed to its problems—including oversight by bureaucrats who are not technologists; questionable procurement tactics; an impossible release schedule and, most of all, sustained, overwhelming attempts at sabotage by entrenched and hostile forces from within the government itself. Which brings up the question: Why isn’t Obamacare a commercial venture? Or more precisely: Given the fact that the Affordable Care Act is already a market-based solution that relies on guiding users to private insurers, why did the administration decide to build and run the massive federal healthcare exchange itself? Read the full article at Quartz: http://qz.com/136901/if-healthcare-gov-had-been-a-commercial-startup-it-would-have-looked-like-this/

1. ARE
.com
Because Your Health Is Everything

2. What Is OCARE?
ARE
PEN.
PEN.
PTIMIZED.
PEN.
PTIMIZED.
VERDUE.
PTIMIZED.
VERDUE.
VERDUE.
Affordable, easy-to-access health insurance for everyone. Because being
ARE
covered should be a right, not a privilege.
ARE
ARE
ARE
ARE
A smarter, simpler way to search for and manage your health insurance. One site.
ARE
One form. Because preserving your health shouldn’t give you a headache.
ARE
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A solution to the single biggest obstacle to a freer, healthier and more productive
America: Guaranteed healthcare coverage, both to enhance your wellness when
you’re healthy, and to treat you in case of illness or accident.

3. What Is OCARE?
ARE
URS.
PEN.
PTIMIZE
VERDUE
OCARE is a public-private partnership — jointly owned by the U.S.
government, who provided initial seed funding for its launch, and institutional,
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venture and individual investors. It is being run as a for-profit social enterprise,
with half of its profits being distributed as rebates or invested in direct benefits for
OCARE members and users.
It operates under a 30-year contract with the government to develop and
manage the Affordable Care Act’s federal health insurance exchange, and to
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provide a range of services designed to fulfill the ACA’s mandates and
requirements. While it is not a monopoly, its federal franchise gives it a scale that
allows OCARE to offer more competitive prices and a more comprehensive
set of offerings than state-run and private marketplaces.

4. The Problem
The health insurance industry is broken.
 Unavailable: 49 million Americans do not have any insurance.
Another 129 million are “trapped” due to potential uninsurability if
they lose their current policies.
 Expensive: For those who do have coverage, the average cost
is $4565 a year and rising at an annual rate of about 6% — four
times the rate of inflation.
 Inefficient: In the individual insurance market — over 14 million
persons — 29% of fees spent on health insurance go to
administrative costs. In the group market, up to 27% of fees from
SMBs (under 10 employees) goes to administrative costs.

5. The Opportunity
2013 US MONITOR: Do you feel you have control over your health?
YES$
NO$
MILLENNIALS
62%
38%$
GEN XERS
62%
37%$
35%$
65%
BOOMERS
33%$
67%
MATURES
36%$
64%
TOTAL
0%
25%
50%
75%
100%
Consumers feel that healthcare is out of their control — and out of control, in general.
• Costs are a concern: 62% of low income adults, 54% of middle income adults, and 44% of high income adults say
they are worried about the “the cost of healthcare” (The Futures Company, 2013 HEALTH & WELLNESS MONITOR)
• So are preexisting conditions: Nearly one in two adults has a chronic condition. The number is projected at 157
million by 2020. (LANCET, “TACKLING THE BURDEN OF CHRONIC DISEASES IN THE USA” JANUARY 2009)
• There is a real need for better and more transparent information: One in two consumers says that they “make
better decisions about health” when clear information is available. This is especially the case for Millennials, who are
disproporationately likely to be uninsured. (The Futures Company, 2013 HEALTH & WELLNESS MONITOR)

6. Direct Premiums Written, Billions
The Opportunity
$45.0
$40.4
$40.0
Though there are over 1,000 health insurance companies in
the U.S., the top five providers control 59% of the market.
$35.0
$30.0
$25.0
$19.3
$20.0
$17.5
$16.3
$15.0
$11.4
$10.0
Number of Enrollees (millions)
$0.0
35.0
23% of
market
11% of
market
9.8% of
market
9.1% of
market
6.4% of
market
UnitedHealth
Group Inc.
$5.0
Humana Inc.
Aflac Inc.
Aetna Inc.
Cigna Corp.
32.7
30.6
The top 10 health insurance companies
have over 135 million paying enrollees.
30.0
25.0
20.0
16.3
12.2
15.0
9.9
10.0
8.5
8.5
6.2
5.2
5.0
Health Net
Highmark
Blue Cross
Blue Shield of
Michigan
5.0
0.0
UnitedHealth
Group
WellPoint
Aetna
Health Care
Service
Corporation
CIGNA
HealthCare
Kaiser
Permanente
Humana
Businesses see a huge and as-yet-untapped opportunity in the uninsured.
• The “Big Five” control almost 60% of the market. Smaller players are challenged to compete with the massive
marketing budgets and sales infrastructures of these giants.
• But because the big insurers control so much of the existing market, they’re hitting the reality that the
future of their business is fundamentally about expanding the coverage universe. Future growth is going to
come from targeting the uninsured, not the currently covered.

7. Health Coverage Today
1
2
6
1.
2.
3
!
Consumer wants insurance
…faces complicated alternatives
5
3.
4.
…and incomprehensible options
…relies on broker/agent advice
4
5.
6.
…after filling out many forms
…ends up with expensive or
insufficient healthcare
coverage, or getting denied
coverage completely.

8. Health Coverage—Reinvented
1
2
6
1.
2.
Consumer wants insurance
…goes online to a single site
5
3.
4.
3
ARE
…completes one data form
…browses simple, standardized
policy options with transparent
pricing from an array of
competing providers
4
5.
6.
…saves money on premiums
and preventative care
…receives cash rebates based
on medical loss ratio and cash
subsidies based on need

9. Our Solution: Changing the
Industry
1. Aggregate
2. Disintermediate 3. Negotiate
Major
insurers
14 million
covered by
individual
plans
5 million
covered by
s
mall group
plans
AR
E
Efficient
online
marketplace
Small & Individual
Group Members
We bring together a large pool of
insurance consumers, including those
from the 36 states that have opted out
of running their own exchanges, and
consumers who choose to use the
federal exchange rather than their staterun option.
We give them secure access to an
efficient online marketplace, where
they can provide their personal
information a single time and search
and compare dozens of different
health insurance options.
Using the negotiating power of
our millions of members and our
federal franchise, we negotiate
the best rates and most complete
coverage options from insurers of
all sizes that qualify for inclusion
in our exchange.

10. Our Solution: Changing the Experience
1. Manage
3. Pay
2. Track
ARE
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Rx
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We are a single, easy entry point for
managing their healthcare — from
private storage of your own basic
health information, to finding providers
and interacting with insurance
companies.
We offer a simple, real-time dashboard for tracking your health — from
fitness, health stats and diet to doctor
and wellness appointments to
prescriptions. And it’s all available
both online and in a handy mobile app
— for real-time reminders and on-thego activity tracking..
Our secure payment infrastructure
allows you to pay insurance and
copay costs, as well as drug
expenses, using your OCARE
membership card — which also
offers discounts and special offers
from participating partners.

11. Why Our Solution Works
We offer a win-win-win scenario.
 Consumers: Get cheaper healthcare, guaranteed coverage and
a simple, streamlined and secure way of managing and tracking
your healthcare relationship.
 Providers: Access to millions of uninsured individuals in one
place, with minimal marketing investment; a level playing field for
providers to compete based on price, features and reputation;
direct insight into consumer health preferences and priorities.
 Society: The ACA will provide access to quality healthcare to an
additional 25 million Americans — about half of the total
uninsured population, by 2020 — reducing the social cost of
illness and emergency care, while giving workers more freedom
than ever to switch jobs or launch entrepreneurial ventures
without fear of losing vital health coverage. About 13.5 million
Americans are expected to use the OCARE exchange to obtain
their insurance in the first seven years of its operation.

12. Revenue Model
We generate revenues three ways.
 Consumers: Targeted, clearly labeled advertising and vetted
special offers are provided to consumers on an opt-in basis.
Consumers are also able to subscribe to premium offerings, like
our enhanced dashboards and mobile app, online education and
telemedicine programs and our OCARE PLUS discount
club, which offers discounts on a wide range of healthy products
and activities, like fruits and vegetables, fitness and wellness
programs
 Providers: OCARE charges a small percentage of provider
premiums for access to the marketplace. Providers may also pay
for priority listings and enhanced profiles, as well as access to
aggregated data (with full consumer privacy protection).
 Institutions: OCARE operates under a 30-year renewable
contract with the federal government, as well as some states and
large individual businesses. A per-user management fee is
charged to offset the cost of secure recordkeeping and data

13. 2013 Launch Plans
AUGUSTSEPTEMBER 2013
OCTOBER 2013
NOVEMBER 2013
COMPARE
$299/mo
$198/mo
$320/mo
$255/mo
$310/mo
CLOSED ALPHA TESTING:
Randomly selected consumers from
36 states given early access for
user feedback. Focus on
UX, bugs, process, third-party
integration.
PUBLIC BETA TESTING:
Open beta, with alternating day
access based on last-name (A-J
M/W/F, K-Z T/Th/Sa; Sundays
reserved for bugfixes). Focus on
bugs, usability, load testing.
LAUNCH:
Full access with optimized
UX, process; rigorously loadtested back-end. Coverage
delivery to begin January 1, 2014.

14. Funding
OCARE is currently seeking a
Series B round of $1 billion.
 SEED $250 million: Initial funding for OCARE came from the
federal government, which will retain 70% of outstanding equity
after the Series B round.
 SERIES A $500 million: OCARE raised its Series A round from
venture and institutional investors, who will represent 20% of
outstanding equity after the Series B round.
 SERIES B $1 billion: OCARE is seeking a final pre-IPO round
of financing, whose participants will represent 10% of
outstanding equity after the Series B round.
 PUBLIC OFFERING: OCARE expects to file to raise $20 billion
in an initial public offering within the next 12 months.

15. ARE
.com
Because Your Health Is Everything